Moving towards Business model Innovation in Health care delivery
In the healthcare system, the business days, as usual, are over. Around everywhere healthcare system is facing a tough time with rising costs and uneven quality despite the hard work of well-intentioned, well-trained clinicians. Health care leaders and policymakers have tried countless incremental fixes—attacking fraud, reducing errors, enforcing practice guidelines, making patients better “consumers,” implementing electronic medical records—but none have had much impact.
Uncertainty and information asymmetries in health care are the basis for a supply-sided mindset in the health care industry and for a business model for hospitals and doctor’s practices; these two models have to be challenged with business model innovation. The three elements which ensure this are standardizability, separability, and patient-centeredness. As per scientific evidence, Advances and Outcomes are more predictable, standardization is more feasible. If a standardized process can also be separated from the hospital and doctor’s practice, it is more likely that innovative business models will emerge.
It’s time for a fundamentally new strategy.
As per scientific evidence, Advances and Outcomes are more predictable, standardization is more feasible. If a standardized process can also be separated from the hospital and doctor’s practice, it is more likely that innovative business models will emerge. As far as patient-centeredness is concerned, it has to move beyond the oversimplifying approach to satisfy the patients with amenities and interpersonal skills of staff, to include the design of structure and processes starting from patients’ needs, expectations, and preferences and care.
Unfolding the standardized and separable processes from the traditional hospital system setting will lead to an increase in hospital expenditure but on the other hand, the new business models will reduce expenses.
Therefore, Innovation in the Business model is an important step to guarantee the sustainability of health care systems; And, Standardizability, Separability, and Patient-Centeredness are the key elements emphasizing the six business model innovations in Healthcare system.